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Target 2020 holiday sales jumped 17%, online sales doubled

Target said comparable sales rose 17.2 percent on Wednesday in November and December as customers bought matching pajamas and gingerbread kits to celebrate a cozy holiday at home during the pandemic.

While online sales remain stable, shoppers also visit Target stores and spend more money on purchases than last holiday season. Combined transactions in Target stores and on its website have increased by 4.3%, and average tickets have increased by 12.3% on an annual basis, the company said.

Despite strong results during the peak shopping season, Target̵

7;s sales growth slowed slightly compared to the profits recorded in the fiscal third quarter. The delay underscores the challenge Target faces in the coming quarters. As more Americans get vaccinated, the company will have to prove that it can keep profits from market share, even when consumers feel more comfortable traveling to smaller stores or returning to malls.

The pandemic can permanently change the rhythm of the holiday shopping season. Target said its stores will be closed on Thanksgiving 2021.

The trader chose to remain closed last Thanksgiving due to the health crisis. To disperse sales and thin crowds, Target began sales weeks before Thanksgiving, which had previously been the starting line for the search for gifts and fillings. He also released more of his deals online.

Target said comparable digital sales more than doubled in November and December from a year earlier, while comparable in-store sales rose 4.2 percent.

Target’s guidelines only include sales in November and December, although its fiscal fourth quarter will end by January 31. He will report the results of the full quarter on March 2 on the day of the virtual investor. Ahead of Wednesday’s news, analysts polled by Refinitiv estimated that Target would earn $ 2.27 a share, after adjustments, with revenue of $ 26.67 billion.

Target is one of the highlights of the severely affected retail industry. Striking sales growth and $ 6 billion in market share were reported, as many other retailers were temporarily shut down and even went bankrupt during the pandemic. Because consumers have limited shopping trips, they have spent more than their dollars in a handful of places, and these tend to be large retailers where they can get a gallon of milk, detergents, and sweatpants at one stop or at a website. .

As in the earlier months of the pandemic, Target buyers continued to use the company’s fast and contactless online options. Its boarding service, Drive Up, has grown by over 500%. Shipt’s target sales increased by more than 300% during the holidays.

Few retailers have reported their holiday sales so far, but Target has far outpaced the growth of e-commerce in the industry. According to Adobe Analytics, online shopping in the US during the holidays in 2020 increased by 32.2% compared to 2019, as during the pandemic more shoppers shopped from home.

Target also made strategic moves that paid off. Owns Shipt, home delivery service on the same day. She recently added fresh and frozen groceries to the boards, a day-to-day service that grew by more than 500% over the holidays. And expand the range in its private food and beverage brand Good & Gather, with a premium line of sauces for sauces and coffee from gourmet pasta as people cook more at home.

Household goods and hard links, which include appliances and sports equipment, were especially popular during the holidays. In both categories there is an increase in sales in the same store from the low 20% compared to a year earlier. Within solid lines, growth is fueled by electronics sales.

Comparable food and beverage sales rose about 17 percent, Target said. Beauty and most importantly saw growth in short teenagers, and clothing – high single-digit profits.

Target said family bedding sets and Christmas tree decorations are among the best sellers. The retailer has also sold nearly 2 million of its Wondershop gingerbreads.

The target shares, which have a market value of nearly $ 100 billion, have gained nearly 60% in the last year. The stock closed at $ 199.10 on Tuesday, not far from its 52-week high of $ 199.50, which it set on Monday.

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